US chipmaker Intel has proposed simpler rules for administrative procedures and employment in Vietnam’s draft decree for the future Vietnam Fund for Investment Support. In a statement, Intel Products Vietnam (IPV) stated that they have already been classified as a high-tech company based on their investment certificates, and therefore suggested that no further documentation should be required to confirm this status in order to receive support from the fund.
Intel argued that any additional documents would contradict Vietnam’s efforts to streamline administrative procedures, as outlined in the government’s Resolution 01/NQ-CP issued in January to reduce bureaucracy. The Ministry of Planning and Investment (MPI), responsible for drafting the decree, responded by stating that the Ministry of Science and Technology would collaborate on issuing confirmation documents for high-tech businesses.
Regarding employment-related rules, Intel believed that the draft decree’s provisions were inadequate, particularly for high-tech projects involving skilled professionals, precision technology, and automation that do not require a large workforce. Intel recommended that the decree should not include employment-related provisions for high-tech companies.
In response, the Ministry of Industry and Trade clarified that employment was not a strict requirement for funding support, but rather a prerequisite along with high technology for receiving “very special” support. These requirements aimed to encourage companies to focus on training and hiring high-quality workers while expanding their projects.
Intel has invested $1.5 billion in Vietnam so far, with their Vietnam factory accounting for 50% of packaging and testing for the company’s global operations. The company expressed appreciation for the Vietnamese government’s continued support and reaffirmed its commitment to long-term investment in Vietnam.
The MPI highlighted that Vietnam’s current policy only offered limited support for investment based on income incentives, such as tax exemptions and reductions. The impending Global Minimum Tax (GMT) would have significant implications for the country, prompting the need to update its legal framework. The ministry also noted that an “outdated” legal framework had caused some global giants, including Intel, to bypass Vietnam for investment opportunities in other countries.
For instance, Intel had initially proposed a $3.3 billion investment in chip production in Vietnam, requesting the country to pay 15% of the investment in cash. However, Intel ultimately decided to invest in Poland instead. Overall, the Vietnamese government is aiming to revise its legal framework to attract more foreign investments and remain competitive in the global market.
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https://theinvestor.vn/intel-seeks-simplified-rules-lesser-restrictions-for-vietnam-investment-support-fund-d11091.html
